10 Biggest Mistakes in Asset Protection Planning
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1. Not Understanding the Purpose of Asset Protection: Asset protection
will not make you "judgment proof."
2. Waiting Too Long To Begin Planning: Preventive planning is both most
effective and least expensive before you have legal problems.
3. Believing That It Is Too Late To Protect Assets: Its never too late
to improve protection. Anything is better than doing nothing.
4. Thinking Creditors are Stupid or Lazy: Don't underestimate the
skill and intelligence of your adversaries. Creditors and their
attorneys are not stupid.
5. Failure to Comprehend Vulnerability of Your Business: The shares of
common stock you own in your professional practice are vulnerable to
creditor attack.
6. Fraudulent Transfers and Conveyances: You cannot protect assets by
giving them to family members.
7. Misunderstanding Salary Exemption: Traps for single business owners.
8. Confusing Estate Planning With Asset Protection: Asset protection is
part of estate planning, but a living trust or will does nothing to
protect your assets from creditors.
9. Confusing Bankruptcy Law and Asset Protection Law: The new
bankruptcy law does not affect Florida's unlimited homestead exemption
and other exemptions outside bankruptcy court.
10. Giving Up Control Over Your Assets: The easiest asset protection
plan is to give someone else control over your wealth. This is not a
good solution.